Effects of light-rail transit systems on cadastral values

Abstract

Despite the well-known nature of Medellin as an innovative city there is little evidence regarding the impact of its mass transit systems on cadastral values. We examined the extensions of the Light-Rail Transit (LRT) system on cadastral values between 2007 and 2019 through a difference in difference research design looking at the effects of the announcement, construction and starting of operations milestones of the project. Our research findings suggest that the expansion of the city’s transportation network, with the LRT project, has premiums on the cadastral values. We found positive effects between 0.3 % and 1.2 % between 2017 and 2019, after the beginning of commercial operations in 2016. Based on our findings we discussed the implications for transportation and urban development policies in cities implementing LRT systems.